What’s best to increase fico score?
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Should I close my Gap store credit card or leave it open to increase fico score? I got the card last month because they offered me 25% if I apply, and since I was planning a big purchase I figured out that I can save a lot of money if I apply.
I’ve just got the statement and paid it in full because I didn’t want to pay for interest. My balance is now zero, and I don’t know what’s better – close the card or leave it open. I don’t have another credit card, but I don’t need one as well. I only applied to get the initial 25% off. So what do you recommend to build good credit?
Thank you
Keep it Open
you want to increase fico score then keep the card open. You may not need a credit card now, but when you will need one (and you will) – you could get better terms if you already have good credit. You may also want in the future to get a car loan or a home loan. Having a good credit history will make life easier for you.
In fact, store credit cards are an excellent way to build good credit because they are easier to get without a credit history.
Keep the card, use it moderately and always pay the full statement to avoid interest.
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